When it comes to growth shares, I think local investors are spoilt for choice on the Australian share market.
Amongst the many high-quality options for investors to choose from, I think the three listed below are up there with the best of the best.
Here's why I would buy them in FY 2020:
Appen Ltd (ASX: APX)
Appen is the global leader in the development of high-quality, human-annotated training data for machine learning and artificial intelligence. This basically means that thanks to its 1 million+ team of crowd-sourced workers, the company has the ability to collect and label high volumes of image, text, speech, audio, and video data used to build and improve artificial intelligence systems. Given the growing importance of artificial intelligence and machine learning and Appen's leadership position, it will come as no surprise to learn that it has been experiencing extremely strong demand for its services. Pleasingly, with the market expected to grow materially over the next decade, I feel Appen is well-placed to continue growing its earnings at a strong rate long into the future.
CSL Limited (ASX: CSL)
Another growth share that I think is worth considering in FY 2020 is CSL. I'm a big fan of the biotherapeutics company due to the quality of its CSL Behring and Seqirus businesses and their potentially lucrative development pipelines. Overall, I believe these businesses have left CSL well-positioned to continue growing its underlying earnings at a solid rate over the next decade. Especially given the strong demand for immunoglobulins and the expansion of its plasma collection network.
REA Group Limited (ASX: REA)
With many property experts tipping a housing market rebound in FY 2020, I think now could be a great time to pick up the shares of this property listings company. Given that REA Group still delivered strong profit growth in FY 2019 despite the housing market downturn, I believe there's a strong chance that its earnings growth will accelerate next year if house prices recover and drive strong listings growth.
